The new measure will also apply to those who are not in work and are receiving social welfare benefits.

Documents issued by the Department of Finance last night set out that people who fail to pay up will be left with little choice in the matter.

The Revenue Commissioners will instruct their employers to deduct the amount its officials estimate is due.

This will also apply to the Department of Social Protection, which pays out social payments, such as jobseeker's benefit.

PAYE workers can have the tax deducted from their net pay or from their occupational pension.

The tax will apply from next July – half the tax will be due in 2013.

People will be able to pay the tax in cash and make the payment in their credit union, post offices or in what the Government said would be a wide range of retail outlets.

Revenue will send out letters from next March.

"This notice will advise liable persons of their obligations in relation to property tax and how they should complete the property tax return," a background document on how the tax will work issued by the Department of Finance said.

Payment

Homeowners will have to set out their preferred payment method when they fill in this return.

If you opt for a direct debit, then the full amount owed will come out on July 21 next.

But people will be able to opt to pay monthly through a direct debit or through their wages.

People who own more than one property will have to file electronically, as will those who already file an annual tax return electronically.

The Revenue will charge interest and surcharges on late payments. Non-payers also face penalties and the publication of their name in the tax defaulters' list.

A single person with a gross income of less than €15,000, and €25,000 for a couple, will be able to defer the tax.

The income thresholds will be higher for those whose mortgage repayments eat into most of their income. Anyone who defers the tax will have interest of 4pc a year applied to the amount they owe.

In addition, the deferred amount and the interest will become a charge on the property. This means the property tax will have to be paid before the property can be sold.

Anyone who does not pay the household charge will have it increased to €200 from next July.

People who do not pay the household charge will be treated the same as those who do not pay the property tax, and interest and penalties will be applied by the Revenue. This will also be the case for the second-homes tax.